Delphi meets SECA Phase 1 goals for solid oxide fuel cell power system
Delphi remains on schedule to bring innovative alternative energy system to
market by 2011
SOFC auxiliary power systems can save 85 percent of the billion gallons of
fuel consumed annually in the U.S. during extended idling of heavy trucks
TROY, Mich., June 20 /PRNewswire/ -- Delphi Corp. has reached an
important milestone in bringing solid oxide fuel cell (SOFC) technology to
market by 2011, according to the U.S. Department of Energy (DOE).
(Logo: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO )
A Delphi-led team working jointly with DOE's Office of Fossil Energy
has achieved all Phase 1 goals of the Solid State Energy Conversion
Alliance (SECA), according to Wayne Surdoval, DOE's SECA program manager.
The Phase 1 test, completed by Delphi in April and validated by the DOE
in May, included four key performance and cost goals. The DOE determined
that Delphi's SOFC unit met them all:
* Peak Power Performance -- Delphi's SECA demonstration system produced
peak power of 4.24 kW on methane, the primary constituent of natural gas,
achieving the goal of 3-10 kW.
* Peak Efficiency -- Delphi's system demonstrated a peak efficiency of
37 percent, exceeding the Phase 1 goal of 35 percent.
* Power Degradation -- Delphi's demonstration system matched the
durability goal with power degradation of just 7 percent over 1,500 hours
of operation.
* Factory Cost -- For factory cost, Delphi also met the Phase 1 goal of
$800 per kW for the total power unit, assuming volume production, by
achieving an estimated $770 per kW.
"The Delphi team has passed an important test," said Surdoval. "In
meeting SECA's Phase 1 goals, Delphi has delivered to DOE's National Energy
Technologies Laboratory a fully operational, highly compact demonstration
system, capable of meeting the space constraints of many potential mobile
and stationary power applications. Their leadership at the systems level
has greatly advanced this team's progress toward a modular, broadly
applicable SOFC power system by 2011."
Under SECA, Delphi has teamed with science and technology developer
Battelle, its Pacific Northwest Division, and the DOE to aggressively
reduce the SOFC system's cost, as well as its mass and volume, while
increasing its efficiency and durability.
The DOE identified the SOFC as one of the more promising ways to
generate electrical power more cleanly and efficiently for a wide variety
of stationary and mobile power applications. Coordinated by the DOE, SECA
is currently undergoing a 3-phase, 10-year program that began in 2001 to
develop the SOFC technology to help reduce U.S. dependence on foreign oil,
while mitigating environmental concerns. SECA's Phase 1 goals called for
industry-led development teams to make meaningful progress in achieving
cost, performance and durability improvements.
A major challenge is that the technology is difficult to develop, as it
is based upon a whole new class of multi-layered ceramic materials.
Additionally, the SOFC unit must be powerful and small enough for practical
applications -- yet durable enough for years of trouble-free operation, as
well as cost-effective to manufacture and for customers to buy.
"We're proud of the progress we've made during the past seven years
developing this technology and we remain committed to maintaining our
leadership in bringing this innovative SOFC technology to the global
marketplace," said Guy Hachey, president, Delphi Powertrain Systems. "We
have a fantastic opportunity to make cleaner and more energy-efficient
electrical power systems, not only for vehicles and other mobile equipment,
but also for stationary power generation."
Next Step: Delphi, DOE move into Phase 2 of the SECA program
Delphi and the DOE will continue its partnership under SECA, said Mary
Gustanski, director of engineering, Delphi Powertrain Systems.
"Working with the DOE, we will proceed to Phase 2 of the program,"
Gustanski said. "Phase 2 will be a 3-year, cost-shared contract between
Delphi and the DOE, valued at more than $45 million. Phase 2 goals will be
to reduce the SOFC system factory cost to less than $600 per kW, to
increase efficiency to 40 percent or more, and to further increase power
density. The Delphi team will also work to increase durability,
particularly to withstand more thermal cycles."
Ultimately, SECA's final goal in Phase 3 is to deliver an SOFC power
system capable of 40 percent or greater efficiency at a factory cost of
$400 per kilowatt. This performance will open up a wide range of mobile and
stationary applications for this ultra-clean power generation technology,
from small-scale multi-kilowatt auxiliary power systems for vehicles and
homes to larger-scale multi-megawatt industrial and utility fuel cell power
plants.
"Achieving the goals of the SECA partnership is important for U.S.
economic, environmental and energy security concerns," said DOE's Surdoval.
"Not only will Delphi's fuel-flexible SOFC system provide clean, efficient
electrical power for vehicles of all sizes, but its modularity will enable
economies of scale in manufacturing SOFCs for near-zero emission,
larger-scale stationary power plants as well, a key objective for the
FutureGen initiative."
Delphi's history in developing SOFC technology
Delphi has been developing SOFC systems since 1999. After demonstrating
its first generation SOFC power system in 2001, Delphi teamed with Battelle
under the SECA program to improve the basic cell and stack technology,
while Delphi developed the system integration, system packaging and
assembly, heat exchanger, fuel reformer, and power conditioning and control
electronics, along with other component technologies.
Compared to its first-generation system in 2001, the Delphi-led team
has reduced system volume and mass by 75 percent. By January 2005, the
Delphi team was able to demonstrate test cells to DOE with power density
more than required to meet the SECA 2011 goals.
"The latest testing demonstrates superior power density again, but this
time in the form of complete fuel cell stacks, packaged and operating in
highly compact, complete power units, about the size of a medium suitcase
(2.3 cubic feet / 65 liters)," said Gustanski.
In addition to its compactness, another key advantage of the SOFC is
its high system fuel-efficiency, particularly when its high temperature
co-product heat can be used in combination with its high electrical output.
For example, SOFCs can be teamed with gas turbines driven by the SOFC's
co-product heat to potentially generate power at 55 percent to 80 percent
thermal efficiency (depending on scale and fuel used). This is
significantly more efficient than today's typical coal-fueled power plant
thermal efficiency of 35 percent to 40 percent. By co-generating power
on-site at industrial facilities, commercial businesses, or even
residences, the SOFC's high-grade co-product heat will enable up to 90
percent efficiency in distributed, combined heat and electrical power (CHP)
generation. Similarly, heavy-duty trucks will be able to utilize SOFC
auxiliary power systems for both heat and electrical power when parked, to
save 85 percent of the fuel that today they consume when idling their main
engine, and likewise reduce idling emissions.
For the United States in total, extended idling of truck engines today
consumes around a billion gallons of fuel annually, so the national
potential for saving fuel and reducing emissions is significant.
While size and efficiency advantages are important for many potential
applications, perhaps the SOFC's most significant advantage overall is its
very broad applicability due to its inherent fuel-flexibility. With
relatively small changes, SOFC systems can potentially operate on a full
range of conventional and alternative fuels. This includes natural gas and
conventional petroleum-based fuels like low-sulfur gasoline, diesel and
propane; high-sulfur military fuels like JP-8 and jet fuel; low-CO2
renewable fuels from biomass like ethanol, methanol and bio-diesel;
synthetic liquid fuels from coal and natural gas; and non-hydrocarbon fuels
such as hydrogen and ammonia.
For more information about Delphi Corporation (Pink Sheets: DPHIQ),
visit http://www.delphi.com .
FORWARD LOOKING STATEMENT
This press release, as well as other statements made by Delphi may
contain forward-looking statements within the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995, that reflect, when
made, the company's current views with respect to current events and
financial performance. Such forward-looking statements are and will be, as
the case may be, subject to many risks, uncertainties and factors relating
to the company's operations and business environment which may cause the
actual results of the company to be materially different from any future
results, expressed or implied, by such forward-looking statements. Factors
that could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the following:
the ability of the company to continue as a going concern; the ability of
the company to operate pursuant to the terms of the debtor-in-possession
("DIP") financing facility; the company's ability to obtain court approval
with respect to motions in the chapter 11 proceeding prosecuted by it from
time to time; the ability of the company to develop, prosecute, confirm and
consummate one or more plans of reorganization with respect to the Chapter
11 cases; risks associated with third parties seeking and obtaining court
approval to terminate or shorten the exclusivity period for the company to
propose and confirm one or more plans of reorganization, for the
appointment of a chapter 11 trustee or to convert the cases to chapter 7
cases; the ability of the company to obtain and maintain normal terms with
vendors and service providers; the company's ability to maintain contracts
that are critical to its operations; the potential adverse impact of the
Chapter 11 cases on the company's liquidity or results of operations; the
ability of the company to execute its business plans, including the
transformation plan described in the Company's March 31, 2006 press
release, and to do so in a timely fashion; the ability of the company to
attract, motivate and/or retain key executives and associates; the ability
of the company to avoid or continue to operate during a strike, or partial
work stoppage or slow down by any of its unionized employees; and the
ability of the company to attract and retain customers. Other risk factors
are listed from time to time in the company's United States Securities and
Exchange Commission reports, including, but not limited to the Annual
Report on Form 10-K for the year ended December 31, 2004, and its most
recent quarterly report on Form 10-Q for the quarter ended September 30,
2005, and current reports on Form 8-K. Delphi disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events and/or otherwise.
Similarly, these and other factors, including the terms of any
reorganization plan ultimately confirmed, can affect the value of the
company's various pre-petition liabilities, common stock and/or other
equity securities. Additionally, no assurance can be given as to what
values, if any, will be ascribed in the bankruptcy proceedings to each of
these constituencies. A plan of reorganization could result in holders of
Delphi's common stock receiving no distribution on account of their
interest and cancellation of their interests. Under certain conditions
specified in the Bankruptcy Code, a plan of reorganization may be confirmed
notwithstanding its rejection by an impaired class of creditors or equity
holders and notwithstanding the fact that equity holders do not receive or
retain property on account of their equity interests under the plan. In
light of the foregoing and as stated in its October 8, 2005, press release
announcing the filing of its Chapter 11 reorganization cases, the company
considers the value of the common stock to be highly speculative and
cautions equity holders that the stock may ultimately be determined to have
no value. Accordingly, the company urges that appropriate caution be
exercised with respect to existing and future investments in Delphi's
common stock or other equity interests or any claims relating to
pre-petition liabilities.
SOURCE Delphi Corporation
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